The gilet jaunes might well take to the streets of France once more, warn French opposition politicians. This comes as the EU has decided that private households will be included in the EU’s Emissions Trading SYstem, which imposes a cap on CO₂ emissions.

EU media Euractiv reports that after a 30-hour negotiation marathon, the European Parliament and EU nations came to an agreement on Dec. 18, 2022, with a decision to reform the ETS system, dubbed ETS2.

The EU Parliament wanted the new system to be implemented in 2029, but EU nations pushed to advance the implementation to 2027, albeit with the option to push back the reform by one year if the energy prices remain extraordinarily high.

At the same time, the parties decided to expand the Social Climate Fund (SCF), intended to soften the blow with financial support for those who will be hit the hardest, from EUR 72bn to EUR 87bn.

Nevertheless, there is still a risk of social revolt in France akin to what occurred with the yellow vest movement, according to French MEPs from the far right and the far left.

”The ETS2 is, by its very nature, contrary to social justice,” remarks Leïla Chaibi, a French member of the Left group in the European Parliament and a shadow rapporteur on the proposal for the SCF.

The European Parliament must formally adopt the ETS2 agreement from December before it takes effect, yet this is considered a formality as a large majority is in favor of the deal.

EU passes sweeping climate package